European EMS market through the eyes of Riku Hynninen
Strong M&A activity, the expansion of the defence and aerospace sectors, and component availability issues are the three key trends that Riku Hynninen believes will shape the European EMS market. During Evertiq Expo Warsaw 2026, the Finnish expert gave an interview in which he discussed the main findings of his analysis of the financial performance of the European EMS sector. He also outlined the challenges electronics manufacturers should prepare for in the coming years.
Riku Hynninen, CEO of Finnish company Agame Oy, spoke at Evertiq Expo Warsaw 2026 in Poland. His presentation focused on the financial performance of the European EMS sector in 2025. The expert compared data published by ten leading companies, looking at indicators such as net profit, net working capital and return on equity.
The analysis provided insights into the financial health of individual companies, highlighting differences in their financial performance and their capacity for further growth through acquisitions. Hynninen also examined key indicators showing how cost structures, including depreciation, interest expenses and tax burdens, affect companies' overall profitability.
“I was talking about the European EMS industry in 2025. How did the EMS companies that publish their financial results do last year? How did they compare to each other in terms of, for example, net profit, net working capital, return on equity, and also M&A, mergers and acquisitions?” Hynninen said.
In his conversation with Evertiq, Riku Hynninen identified three major developments that have influenced the industry over the past 12 months.
“One being the, very busy year for acquisitions last year. The top EMS companies in Europe acquired a lot of companies, and that’s driving growth into 2026. The second trend is the growth of the defence and aerospace business in Europe, and many of these European EMS companies are riding that wave now. For example, Kitron is growing like 60% per year, driven by the defence and aerospace business. The third, which is indirectly related to data centre and AI investment in the world, is that there are issues in the supply chain now related to price increases and increasing lead times of components. These will impact the EMS industry in 2026 and beyond,” Hynninen explained.
Hynninen is a regular Evertiq columnist and has published a three-part series examining the financial foundations and consolidation of the European EMS market. The trilogy comprises EMS under the hood: Dissecting the financial engines of Europe’s manufacturing leaders, The consolidation war chest: Who has the firepower to buy the growth?, and EMS under the hood: Capital efficiency and overall winners. Together, the articles explore the financial performance of Europe’s leading electronics manufacturers, the resources available to fund acquisitions and the role of capital efficiency in determining market leaders.
The full interview with Riku Hynninen is available above. It provides additional context for his presentation at Evertiq Expo Warsaw 2026, offering a closer look not only at the results of Europe’s leading EMS manufacturers but also at Hynninen’s assessment of key market developments and his recommendations for financial management amid growing pressure on supply chains.
Evertiq Expo will return to Warsaw on 21 October 2027.
